AMD Acquires AI Startup to Boost AI Chip and Software Efforts, Challenge Nvidia's Dominance

AMD recently acquired AI software startup Nod.ai to help compete with Nvidia in AI chips and software.

Nvidia leads in AI with its GPUs and software ecosystem, while AMD relies on 3rd parties for software.

AMD's acquisition of Xilinx in 2022 could help with software for its AI push.

It's unclear if AMD's efforts will be enough to catch up to Nvidia's lead in AI.

AMD stock trades at 26x 2024 earnings estimates, so investors are betting on AMD's AI success.